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Average hourly pay

The main facts and figures show that:

  • in the last 3 months of 2016, the average (mean) hourly pay for all employees was £13.69

  • in the last 3 months of 2016, the average hourly pay for White employees was £13.75, while the average hourly pay for employees from all other ethnic groups combined was £13.18

  • Indian employees had the highest average hourly pay (£15.81), while Pakistani/Bangladeshi employees had the lowest average hourly pay (£11.42)

  • on average, employees from the Mixed and Indian ethnic groups earned more per hour than White employees, whereas those from the Pakistani/Bangladeshi, Black, and Other ethnic groups earned less

Things you need to know

These figures come from the Labour Force Survey (LFS), which is a study of the employment circumstances of the UK population. It is the largest household study in the UK and provides the official measures of employment and unemployment.

Employees report their own hourly rates of pay as part of the survey. If an individual is not available for interview, someone else in the same household may answer on their behalf (known as a 'proxy').

Using self-reported and proxy answers carries a risk of error in the figures given. As a result, the LFS is known to underestimate the actual rates of gross weekly pay and hourly pay.

The Office for National Statistics (ONS) excludes estimates of earnings greater than £100 per hour when it publishes results based on the LFS. Such high values are not very common, but they can have a big influence on the mean hourly pay. Excluding them allows the survey to give more accurate estimates of hourly pay for the wider population.

Respondents to this survey are interviewed 5 times – once every 3 months – but are only asked about their hourly pay in the first and last of these interviews. For this reason, ONS recommends that any estimate of change over the short term be made with caution.

These findings show the mean (average) hourly pay for employees in each ethnic group. In reality, employees’ pay will reflect factors besides ethnicity, such as the industry they work in and their occupation, qualifications, experience and seniority. Where some employees have much higher incomes than others in the same ethnic group, the mean hourly pay for that ethnic group will be higher. As a result it may not accurately represent the pay of the less well-paid employees in that group.

What the data measures

This data measures the average (‘mean’) gross hourly pay for all employees aged 16 and over in the UK.

‘Gross hourly pay’ is an employee’s hourly pay before any deductions for things like tax and National Insurance.

The ethnic categories used in this data

The analysis uses the following broad ethnic categories, based on the 2001 Census:

  • Black
  • Indian
  • Mixed
  • Pakistani/Bangladeshi
  • White
  • Other (which includes Chinese, Other Asian and Other ethnic groups)

This analysis distinguishes between the Indian ethnic group and the Pakistani and Bangladeshi groups (which are combined). This reflects the different employment-related outcomes among different Asian ethnic groups, and is in line with other publications on the official labour market statistics website, Nomis .

Ethnic groups and how data on ethnicity is collected

Average hourly pay by ethnicity

Average hourly pay by ethnicity over time

Ethnicity Jan-Mar 2013 Apr-Jun 2013 Jul-Sep 2013 Oct-Dec 2013 Jan-Mar 2014 Apr-Jun 2014 Jul-Sep 2014 Oct-Dec 2014 Jan-Mar 2015 Apr-Jun 2015 Jul-Sep 2015 Oct-Dec 2015 Jan-Mar 2016 Apr-Jun 2016 Jul-Sep 2016 Oct-Dec 2016
£ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £
All 13.00 13.09 13.13 12.95 13.15 13.08 13.29 13.22 13.33 13.49 13.36 13.50 13.56 13.80 13.82 13.69
Ethnic minorities (excluding White minorities) 12.84 12.67 12.69 12.43 12.81 12.26 13.41 12.65 12.56 12.79 12.89 13.61 13.60 13.86 13.33 13.18
Black 11.97 11.39 12.74 12.18 12.85 11.46 12.22 11.68 11.07 12.04 11.73 12.00 11.75 12.27 11.80 11.88
Indian 13.36 14.34 14.87 14.02 14.15 14.08 14.77 14.35 14.55 14.47 14.84 15.92 16.03 14.86 14.90 15.81
Pakistani/ Bangladeshi 9.82 11.32 10.48 10.38 10.96 11.31 9.07 10.62 12.24 11.84 11.28 12.67 12.24 12.35 10.84 11.42
Mixed 16.34 13.57 12.48 11.10 12.77 11.39 15.25 15.17 12.47 13.21 12.54 13.68 14.69 14.95 13.04 14.61
White 13.01 13.14 13.18 13.01 13.19 13.17 13.27 13.29 13.42 13.57 13.42 13.49 13.56 13.79 13.89 13.75
Other 13.57 12.68 12.04 12.67 12.46 11.98 15.27 12.21 12.45 12.53 13.30 13.98 13.14 14.80 14.57 13.03

Summary

This data shows that:

  • the average hourly pay in the last 3 months of 2016 was £13.69, and the average hourly pay in the same 3 months of 2013 was £12.95

  • in the last 3 months of 2016, Indian employees had the highest average hourly pay, at £15.81 an hour, while Pakistani and Bangladeshi employees had the lowest, at £11.42 an hour (a difference of £4.39 an hour)

  • the gap between the average hourly pay of Indian employees and Pakistani and Bangladeshi employees was wider in the last 3 months of 2016 compared with the same period in 2013 (when the gap was £3.64 an hour)

  • since 2013, the average hourly pay of Indian employees has tended to be the highest out of all ethnic groups, while the average hourly pay of Pakistani and Bangladeshi employees has tended to be the lowest

Methodology and type of data

Type of data

Survey data

Purpose of data source

The main purpose of the Labour Force Survey (LFS) is to provide good quality estimates about the UK workforce.

The survey measures all aspects of people's work, including:

  • the education and training needed to equip them for work
  • features of their jobs
  • unemployment and jobseeking
  • income from work and benefits

Methodology

The data gives estimates of earnings based on the Labour Force Survey (LFS).

This analysis uses the ‘mean’ average to report hourly pay. The mean is worked out by adding up the hourly pay of all respondents and dividing by the number of respondents.

The choice of the 'mean' as a measure of average hourly pay is affected by extreme measures which may not reflect some of the lower paid people in each ethnic group. ONS has taken steps to reduce this impact particularly where values over £100 may have been given in error. Using the 'median' as a measure of average pay would be unreliable for ethnic groups where there were small numbers of respondents. (For each ethnic group, if every respondent was lined up in the order of their hourly pay, the median would be the hourly pay of the person in the middle.)

The data on employees’ earnings captured by the LFS is thought to be of a lower quality than other sources, such as the Annual Survey of Hours and Earning (ASHE) and the Average Weekly Earnings survey (AWE). This is because employees report the information themselves rather than their employers. However, this analysis uses LFS because neither ASHE nor AWE collect data on employees’ ethnicity.

The LFS has been held continuously since 1992. It is designed to produce nationally representative results for any 3-month period.

Each sample in the LFS is made up of 5 waves. The sample consists of approximately 40,000 UK households and 100,000 individuals per quarter. Respondents are interviewed for 5 successive waves at 3-monthly intervals and 20% of the sample is replaced every quarter. Respondents are only asked about their pay in the first and last of these interviews. The response rate for October to December 2016 was 42%.

All surveys carry the risk of biased results if some types of people were less likely to respond than others. To compensate for this, the responses to this survey have been weighted so they better reflect characteristics of the target population. The weighting scheme was designed so that the sample reflects the target population's age and sex profile, as well as its geographic spread (region and local authority).

Rounding

Figures have been rounded to the nearest pence.

Quality and methodology information

Data source details

Source

Labour Force Survey

Department

Department for Business, Energy & Industrial Strategy

Type of statistic

Official statistics

Publication frequency

Ad-hoc

Suppression rules

Sample sizes of less than 30 have been suppressed.

Results above £100 an hour have been excluded because they affect the quality of the data.

‘Suppression’ means these figures have not been included in the data, to protect confidentiality and because the numbers involved are too small to draw any reliable conclusions.

Download the data

average-hourly-pay.csv

Time, ethnicity, denominator (weighted and unweighted)

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